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tv   Washington Business Report  ABC  March 25, 2012 9:30am-10:00am EDT

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captioned by the national captioning institute --www.ncicaprg-- >> business news frorom the capital region. this i"washington business repoport" with abc7 national correspondenent rebecca cooper. >> of things for joining us for a look at busins and finance here in the washington regn. we are going to diuss the push to promotete u.s. manufacturing by the administration. josh boak will be joining us for our round table segment from politico. first, we are focusing on the intersection of lobbying and the
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process of law. we turn to the man picked as one of the 50 most powerful peoplee in washington. totommy boboggs. he is on the list of the t top 100 lawyers and d his firm patton boggs is a among the top-10. you were called washingngton's premier agent of influence. you were not just in the top 50. your number15. you were ahead of senator schumer and grover norquist. what makes you so powerful i washington? >> i wish you said was not the head of chuck schumumer. that wld be a prlem. washington need people to transition from the private sect to the public s sector.r. i think our firm es that
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better than anyone in washington. anne who has been around as long a as we have knows how to do that well. >> you are considered on of f the more interesting characters of washington. i i woulbe remiss i if i did not point out your family pedigree. your father was one of the most powerful majority leaders in the history of the house before he ssed a away in an airplane accident. heas seceded by your momother o was one of the e mostowerful womemen in congress. your sister took the path of media. yotook the path of law school. when you got o of laschool there were only 100 registerered lobbyists. what made you see that as your
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future? >> i grew up in politics. i had great respect for politicians. i wi the rest of the couountry have as much r respect as i have for politicians. i wanted to be in that game. i tried being an elected official once. it is a very snificant game beuse you are really at t the table where the decisions are made that affect worldwide politics. it is an interesting place to be and a n place to be. >> why so much at the intersection of lobbying and law that go hand-in-hand in washington? >> they did not use do. when we started out, we were probly thehe only law firm. we now have about 600
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lawyers. most law firms do not engage in loying. there we very few lobbyists. before 10, less than 100. >> n now tens of thousands. >> andnd a lot more if u incnclude all of the other influences in government. the reason f for that is not rely hard to understand. prioro 1970, washingtoton was run by about 20 people. congress and the white house workeded in step with each other. the e whitee house controlled most of the agency's. the e contl of washiton s yo could say 20 p people at the most. yodid n need a lot to lobbyists to lobby 20 people. many things hahave happened. now you have a government run by 45,000 people.
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a lot of people e on theutside tryingng to translate what outside interests need. >> one senator said lobbyiststs do not know what the country needs. >> this government rticarly now you have a huge number of people engaged i government. the government cannot function without people translating the outside to the inside and the inside to the outside.e. that is what a lobbyist does. what has also changed is the information flow. back then, the information came om thehe agency's. the e only real knowledge that they got was from the government. today,y, we have much betterer
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informrmation than the government does. >> y you think that the key to your success is information. your ability to absorb information and know what is goingn everywhere at all times. >> a and to tranate it. >> what t do you say to those small businesses out there today who can nonot afford lobbyists? how can other's inflfluence waington? there is no function that there is a distinctition between people who cannonot afford us and ople w who can. washington does have many nonprofit organizations labor ornizations, environmental organizations that basically are able to effectively lobby themselves and they do a good job. there is an advantage to having money st like in any other
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area of american life, but it is offset because politics of those groups are a lot better than the politics and business. >> it is the firm's 50th anniversary. you all have been involved in some histocegislation. you helped to bring back chrysler and represented many domestic and foreign clieients. anthouts on this 50th anniversary? >> we are azed at we have been here for 50 years. over 1000 peopople working for us in offices in many places and rticularly in the middle east. it has b been a nice ride. i hope it continues. the business itself has bebeen flat ever since 2008. we have been lucky. we have weathered that ok anand
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ahead of the curve. >> continuing to grow. tommy boggs, thank you for joining us on "washington business report." after the break, at an interview with a 23-year-old ceo getting national headlines. we have that after the break. ♪ ♪ [ male announcer ] from our nation's networks... ♪ ♪ ...to our city streets... ♪ ♪ ...to skies around the world... ♪ ♪ ...northrop grumman's security solutions are invisibly at work, protecting people's's lives... [ soldier ] move out! [ male announcer ] ...without their even knowing it. that's the value of performance. northrop grumman.
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>> welcome back. seth priesbatsch may be among the least orthodox entrepreneurs and a group of people known for doing things their own way and has been named one of the top-10 to watch in
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the world in social media wiwith his startup, scvngr. nonow he is gng aer groupon and livingsocial with his new take on a popular consumer trend. seth priesbatsch joines us live via skype from massachusetts. welcome to "washington busininess report." i hunted you down when i saw y on a list of one to watch. your biography is fascinating. you are already considered someone who is a major market in the world of business. you first got started at the age of 11. u set up a company and you have representatives working poor you in india. they called you in interrupted you when youere in class at the age of 11. >> that is true. i politely told my teacher that i had to take the call. i got what we needed to get
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done, but the teacher was on happy. >> you are known as a doer. you set up contraband snacks and lockers. by the third day a unit $1,500 in profits but the princip shut you down. then you teamed up and started scvngr in princeton. what did you hope for the future? >> all of the cool kids were basically dropping out of school. we basically got this idea that i habeen playing arounund with of wt it would meano take video games and move them into the real world. we ended up building the first generation o scvngr which has become eight 2.5-million player game. level up is -- >> let's explain.
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i went othe web site. i have to get my android phone programmed for scvngr. everyone is playing in. they all have various scvngr games that you can click on your phone and you get free poin. it is a lot of fun and addiive. this next game level up, gives you rewards for being a return customer. >> both are going superfast and they use similar game mechans to motivate behavior to make fun more fun and rewarding. with level up, it is very,ery mainstream and simple. consumers download thepp a can head to any of these businesses and instead of pulling out their wallet, they
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can pull out theirhone. they can g get rewarded as they go backck. it is using your phone, saving money, and k kind of like the daily it dealorld but it ends up being betteter for the businesses and reward you ask the customer for coming back. >> gooe was one of your earlier investors. you wear the same orange shirt day after day. you have six of them. you always have those sunglasses on your head. how you get anyone to take you seriously? >> i find that age and dememeano are not the reasons why someone is going to take you seriously not. it all has to do with results. we make the results first.
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i made my first $1 million when i was 19. we are a five-person company but revenue or $1 million. thesere our 400 clients and they love us. they are all repeating. i probably look a little goofy and definitely have a penchant for orange shirts, but the results are real. as we e make more money, -- level up is the secondnd largest mobile network in the country. it is moving1.5 million every month to local businesses. whether you are young or old or a seris or funny person, it does not matter as long as the results are there. >> seth priesbatsch, i have my eye on you. thank you for joining us on "washington business report." >> thank you for having me. >> up next, sange planes and
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automobiles. how did this small colorado town get through tough economic times? freight rail. it attracted large companies, like vestas. we built four factories to make turbine bladestowers, and generators. creating over venteen hundred jobs. then suppliers, stores more companies followed, creating more jobs. economists call that the ripple effect. i call it the freight rail effect. freight rail connects every corner of america, bringing jobs and economic growth along for
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[ male announcer ] the united mileageplus explorer card. get it and you're in. >> welcome back. the p presidential c campaign is no exception. the economy is taking center stage. as republicansns continuedo battle it out, president obama has mamade jobs andthe focus of his campaign. he took a tour of a new piece off american manufactcturing. joing us this wee sean mccoack a vice presiden at
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boeieing, and josh boak from politico welcome to you both. josh i want turn to you because you covered friday's a story about the naming of the new head of the world bank. tell us about it. >> it is like from out of the blue. no one expects it. that is the president of dartmoh college. jim yong-kim. if you do know of him, he is known for the work he has done to help people in haiti rusa, and africa deal with medical issues. >> any picy tea leaves we can read >> there are a couple of tea leaves in he and theyre pretty important. we are going to see re of a focus on health issues as a source of economic development.
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it has not been the main highlight. the other tngs we are going to see is thu.s. continue to exert its authority on ththe world bank. ere has been a push to have leadership of their ow >> another bank that is in the news the export-import bank. repepublicans balking at the effo to expandending. four people whoho are not following this story, what is att stake? >> what is at stake are loan guaranes for a lotf american exporters whether it is bowing commitee caterpillar orr hundreds osmall businesses. >> because it guarantees loans to yourr customers. >> in essence it is like buying insurance on sometething.
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there are market rates for these things. the market rate is probably lower. for american expxporters, it is essential. the europeans chinese, and others are d doing the same thing. the bank is not something that cocosts a taxyer dollar. it actuaually rurns moneyo t treasury. it is terribly important.. wewe are on the side of th xm bank. in the past t this has been a bipartisan issue. we boeing obvioiously have anan interest in this thing. >> what are the complaints? >> my reporting is that house majority leader eric cantor and several republicans are holding this up. they criticize this bank as an example of corporate welfare. it is important to putut it into
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cocontext. the administration hopes to get this deal done before the cocongressional recess. it t turns out, , even people in nigeria need to buy things like auto parts. they are trying to g credidit in nigeria to try to buy autoparts. this is when the american government steps in -- >> sean says and many other defenders say this is not a taxpayer handout to the people getting these guaranteed loans so why do they consider it corporate welfare? >> because it is a good political i issue and corporate welfare resonates wit voter. >> who is right? who is wrorong? >> if f we want to keep on growin exports, this is a critical tool for us to have because it lps us get into markets where we do not have as big of a position that we would
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like. >> let's turn to the president's sition on jobs. tell us about the psident's visit to boeing and d goingn t dream liner. >>e were really proud to have presesident obama visit us and take a look at our newest product. itit is really indicative of the manufacturing yoyou are seeing in the united states. over the course of several years, some of the wor was outsourced. we are trying to bring some of that back in. >> what is the motivation? >> f for a number of different reasons. we thi we can do it just as well or better. >> issues about jobs in the u.s. -- >> purely a business decision. with the ramp up and the rates on the streamlinernd the 737
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we hired aboutut 13,000 new people. >> you say it is t gng to be the solution to the e job defici >> of course it is a business decision for boeing to do it. president ama is telling these things t voters during the middle of an election. are we ever going to get back to 19 million -- >> everyone knows the answer to that is no. arare we going to make a come back to some kind of level -- >> we are going to add some jobs as a result of the recovery, but manufacturing is not gogoing to hold its centerpiece as it once did in the 1950's. >> back with more after ts. stay tuned.
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[ baby coughing labored breathing ] [ coughing continues ] [ gasping
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] [ elevator bell dings, coughing continues ] [ female announcer ] washington can't ignore the facts. more air pollution means more childhood asthma att.acks. [ coughing continues ] log on to fightingforair.org and tell washington: don't weaken clean air protections. >> our number of the week is number one and it goes to the district of columbia. a survey found d.c. has the fastest wage growth of any county in the nation. in the last decade, the typical salary went fm $51,000 to $78,000. coming in second, montgomery county. fairfax county in frth place.
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thank you for watching "washington business report."
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